1. Suppose that an economy has two sectors: rice and computer production. Labor is mobile between sectors, but capital and land are not.Capital is "specific" (i.e., only used) to make computers. Land is specific to grow rice. Trade liberalization results in an increase in the domestic price of computers.

1. Draw on the diagram and state in words below the diagram how the price change affects:
   1. The distribution of labor between the rice and computers sectors.
2. The nominal wage in the rice and computers sectors
3. Explain with detailed arguments how the price change affects:
   1. The MPL_C in computer production and MPL_{R in}rice production
   2. The real wage in the rice and computers sectors.